PTT Global Chemical to join hand with PT Pertamina (Persero) for joint development of World Capacity Petrochemical Complex in Indonesia
Through past several months of the comprehensive partner selection process from initially 11 petrochemical companies on a global scale, PT Pertamina (Persero), the Indonesia National oil company, announced on March, 2013 in selection of PTT Global Chemical Public Company Limited (PTTGC) as a partner to joint invest in its first world scale Petrochemical Complex in Indonesia.
Pertamina owns and operates 5 refineries throughout Indonesia. It is ranked the 5th largest in Asia so it has tremendous potential to integrate refinery and petrochemical business and add value to the natural resources of Indonesia. With these advantages, Pertamina is determined to be a major player in Indonesia and the region.
This partnership project aims to build 1 million tons of naphtha cracker as well as downstream polymer units on Java Island to serve tremendous demand growth of petrochemical products in Indonesia and consequently, reduce dependency of the imported products.
This collaboration fits well with PTT Global Chemical growth aspiration in strengthening our core business as well as extending the footprint in Southeast Asia. In the next step, both parties shall define framework of collaboration set forth in a Head of Agreement (HoA), which will be signed in early April 2013. The two companies will then undertake detailed feasibility studies related to future business development plans. It is targeted that the joint venture between Pertamina and PTT Global Chemical to be set up at the end of 2013 to accelerate the implementation of business plan and meet the complex start up schedule by 2017.